The steeper the short-run aggregate supply curve, _____
a. the smaller the impact of a shift in aggregate demand on equilibrium output
b. the larger the value of the spending multiplier
c. the larger the impact of a shift in aggregate demand on equilibrium output
d. the smaller the change in government spending needed to achieve the desired change in equilibrium output
e. the flatter the aggregate demand curve
a
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Under Purchasing Power Parity
A) E$/E = PUS/PE. B) E$/E = PE/PES. C) E$/E = PUS + PE. D) E$/E = PUS - PE. E) E$/P = PUS/PE.
If society were to experience an increase in its available resources its production possibilities frontier would:
A. shift in. B. not move. C. become convex. D. shift out.
According to the capture hypothesis, it appears that regulators eventually end up
A. adopting policies that benefit consumers at the expense of the regulated firms. B. satisfying neither producers nor consumers, but striving to control as much as possible. C. adopting policies that benefit the firms being regulated. D. adopting policies that benefit no one.
Refer to the labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. If an inclusive union was formed and was able to get the monopsonist to agree to a $7 wage rate, then the monopsonist would:
A. reduce employment from 5 to 3 workers.
B. reduce employment from 5 to 2 workers.
C. increase employment from 3 to 5 workers.
D. not alter its level of employment.